What’s an IDA?

Individual Development Accounts (IDAs) are matched savings accounts that allow individuals the opportunity to save... and have their savings matched…for asset accumulation. The money saved in a Money IDeAs IDA account may be used for:
Purchase of a first home  or    Post-secondary education or Job training                                              

Money IDeAs respects your right as an individual to seek your own future and goals.  The program builds on your initiative and dreams. As a participant, you will set a savings goal with a program representative.  Each month you will make a deposit into a savings account.  When you have reached your goal (a maximum of $1,000) your savings will be matched dollar-for-dollar on a 3:1 or 2:1 ratio. Along with meeting the savings goal, you must meet the other program requirements to receive the match.
                            (Home Ownership = 3:1)                   (Education = 2:1)

Eligible participants open their accounts with a commitment to save a minimum amount each month    ($20 minimum).   The money is deposited in an interest-bearing account.  Money deposited by account holders must be from earned income.When the account holder meets his or her savings goal and the requirements of program participation, the match funds become available for approved use.

NEMCSA acts as the fiduciary agent for the funds.  Match funds are not accessible to you, as a participant, until you are ready to make an approved purchase.  At that time, a check is written to the vendor and the purchase is made.

Learning to save and budget your money isn’t an easy task.  By participating in the Money IDeAs program, you will learn the financial skills necessary for your future success.  You’ll also receive one-on-one counseling, as well as peer support from others in the group.

An important part of the program is the Financial Literacy Curriculum.  You will attend classes that will provide you information on goal setting, using a financial institution, budgeting, and establishing and/or repairing credit.

Financial Literacy is an important part of the Money IDeAs program, but of equal importance is the Asset Specific Training you will receive.

Specialized training classes will be required and will be tailored for each allowable purchase.  No matter what your intended purchase is, this extra training will be beneficial.  You’ll increase your understanding of the process for acquiring your chosen asset, and further ensure your success.

There are many benefits to establishing an IDA.  In addition to the obvious – the match money – each participant will have the opportunity to work one-on-one with a credit counselor to repair or establish credit.  This is an important step in being ready to purchase your asset.

Other opportunities include peer groups and the availability of program staff to help participants through any hard times.  Also, you’ll have access to referrals of other support services.  The purpose of this program is to help you increase your assets and ensure your family’s future success.

Contact an IDA coordinator listed below for information on an orientation session and application.  Acceptance into the program will be based on a committee review of applications, credit reports and an interview.  To be eligible for application,       you must be within 200% of poverty, according to the            
federal guidelines

IDA is a matched savings program offered by NEMCSA

 For information about IDA’s contact:
Chris Souva, IDA Coordinator
(989) 358-3161
email: souvac@michworks-nemc.gen.mi.us
315 W. Chisholm
Alpena, MI 49707